Semiannual report

Vanguard Global ex-U.S. Real Estate

Index Fund

Semiannual Report | April 30, 2017

Contents

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, therisks of investing in your fund are spelled out in the prospectus.

See the Glossary for definitions of investment terms used in this report.About the cover: No matter what language you speak, Vanguard has one consistent message and set of principles. Our primary focus is on you, our clients. We conduct our business with integrity as a faithful steward of your assets. This message is showntranslated into seven languages, reflecting our expanding global presence.

A new format, unwavering commitment

As you begin reading this report, you’ll notice that we’ve made some improvementsto the opening sections—based on feedback from you, our clients.

Page 1 starts with a new ”Your Fund’s Performance at a Glance,” a concise, handysummary of how your fund performed during the period.

In the renamed ”Chairman’s Perspective,” Bill McNabb will focus on enduringprinciples and investment insights.

We’ve modified some tables, and eliminated some redundancy, but we haven’tremoved any information.

At Vanguard, we’re always looking for better ways to communicate and to help youmake sound investment decisions. Thank you for entrusting your assets to us.

Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 1

Chairman’s Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Fund Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Performance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . 34

Trustees Approve Advisory Arrangement. . . . . . . . . . . . . . 36

Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Your Fund’s Performance at a Glance

1

Total Returns: Six Months Ended April 30, 2017

TotalReturns

Vanguard Global ex-U.S. Real Estate Index Fund

Investor Shares 5.26%

ETF Shares

Market Price 5.35

Net Asset Value 5.36

Admiral™ Shares 5.38

Institutional Shares 5.39

S&P Global ex-U.S. Property Index 5.16

International Real Estate Funds Average 5.72

International Real Estate Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.

Institutional Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria. TheVanguard ETF® Shares shown are traded on the Nasdaq exchange and are available only through brokers. The table provides ETF returnsbased on both the Nasdaq market price and the net asset value for a share. U.S. Pat. Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573;8,090,646; and 8,417,623.

For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV.

• Vanguard Global ex-U.S. Real Estate Index Fund returned more than 5% for the six

months ended April 30, 2017, ahead of its benchmark but behind the average return of

its peers. The fund’s return diverged from that of its benchmark index in part because

of temporary pricing discrepancies arising from fair-value adjustments. Please see the

Glossary entry for Fair-Value Pricing.

• All of the major regions generated positive results. The developed markets of Europe

and the Pacific region, which together represented more than three-quarters of fund

assets on average during the period, accounted for most of the fund’s return.

• On a country basis, the United Kingdom, which posted strong results despite lingering

concerns about its exit from the European Union, contributed most to performance.

Singapore and Israel also helped returns. Japan, which accounts for about 20% of the

index, was the biggest detractor.

2

Expense RatiosYour Fund Compared With Its Peer Group

Investor

Shares

ETF

Shares

Admiral

Shares

Institutional

Shares

Peer Group

Average

Global ex-U.S. Real Estate Index Fund 0.35% 0.15% 0.15% 0.13% 1.36%

The fund expense ratios shown are from the prospectus dated February 24, 2017, and represent estimated costs for the current fiscal year.For the six months ended April 30, 2017, the fund’s annualized expense ratios were 0.36% for Investor Shares, 0.15% for ETF Shares, 0.15%for Admiral Shares, and 0.13% for Institutional Shares. The peer-group expense ratio is derived from data provided by Lipper, a ThomsonReuters Company, and captures information through year-end 2016.

Peer group: International Real Estate Funds.

Dear Shareholder,

“Buy what you know.”

It’s one of the adages of investing, and it

has plenty of intuitive appeal. After all, the

familiar seems inherently less risky. It’s

no wonder that many investors heavily

tilt their portfolios toward the stocks and

bonds of their home country. This is known

in investing parlance as “home bias.”

U.S. investors sometimes think they

can get all the global diversification they

need by owning shares of U.S.-based

multinational companies. And that may

seem like the best of both worlds:

international diversification without ever

leaving the friendly confines of home.

The potential pitfall is that, as Vanguard

research has suggested, the performance

of a company’s shares tends to be highly

correlated to its domestic market, regardless

of where that company conducts most of

its business.

Americans aren’t alone in being portfolio

homebodies. Vanguard has found that in

a range of developed countries—Australia,

Canada, Japan, and the United Kingdom,

as well as the United States—investors

held a greater percentage of domestic

stocks than would be indicated if they

had taken their cues from a globally

diversified, market-weighted benchmark.

(You can see this tendency in the chart

later in this letter.)

Chairman’s Perspective

Bill McNabbChairman and Chief Executive Officer

3

Why home bias exists Vanguard’s Investment Strategy Group

identified a range of reasons why investors

might not embrace global diversification,

including concerns about currency risk and

an expectation that their home country will

deliver outsized returns.

One factor we identified—preference for

the familiar—seems particularly relevant.

With so much global uncertainty about

geopolitics, monetary policy, and the

economic outlook, it’s understandable

why investors may not want to stray

too far from home.

But in their aversion to the unknown,

investors can end up increasing, rather

than lessening, their risks. That’s

because they’re sacrificing broad global

diversification—one of the best ways

I know of to help control risk.

In many cases, individual country markets

are much less diversified than the global

market in total. Global investing, then, can

be an answer for investors who want to

reduce concentration risk. That can include

overconcentration in a particular country,

region, or industry.

And the good news is that global investing

is easier than ever, thanks to the wide

availability of low-cost, internationally

diversified stock and bond funds. It’s

possible, in a sense, to own the whole

world with just a couple of funds.

Market Barometer Total Returns

Periods Ended April 30, 2017

Six One Five Years

Months Year (Annualized)

Stocks

Russell 1000 Index (Large-caps) 13.46% 18.03% 13.63%

Russell 2000 Index (Small-caps) 18.37 25.63 12.95

Russell 3000 Index (Broad U.S. market) 13.83 18.58 13.57

FTSE All-World ex US Index (International) 10.55 12.98 5.60

Bonds

Bloomberg Barclays U.S. Aggregate Bond Index

(Broad taxable market) -0.67% 0.83% 2.27%

Bloomberg Barclays Municipal Bond Index

(Broad tax-exempt market) -0.34 0.14 3.16

Citigroup Three-Month U.S. Treasury Bill Index 0.23 0.37 0.11

CPI

Consumer Price Index 1.16% 2.20% 1.22%

4

Expanding our opportunitiesA key to overcoming home bias is

reframing the way we look at investing

outside our home countries. Take, for

example, automakers or pharmaceutical

companies. There are well-regarded firms

in both industries located throughout the

world. Over the next five years, nobody

can know for sure whether a Japanese

or U.S. or European company will produce

a popular new sedan that outsells the

competition or come up with new treat-

ments to combat illness. So why not own

them all? And that includes their bonds

along with their stocks.

Full global diversification also allows

you to capitalize on opportunities in both

developed and emerging economies.

Betting on which individual country—let

alone company—will be the next market

darling can be a fool’s errand.

A better choice can be to harness the

potential of all markets. In my personal

investment account, I have an emerging

markets position that complements my

developed-market holdings. Not only can

global diversification help control risk, but

it can also expand our set of opportunities

among stocks and bonds.

Home bias shows investors across the world are fixated on the familiar

Investors often own a greater share of their home country’s stocks than would be indicated

by the allocations of a globally diversified, market-capitalization-weighted index fund.

Weight

Notes: Data as of December 31, 2014 (the latest available from the International Monetary Fund, or IMF), in U.S. dollars. Domestic

investment is calculated by subtracting total foreign investment (as reported by the IMF) in a given country from its market capitalization

in the MSCI All Country World Index. Given that the IMF data are voluntary, there may be some discrepancies between the market values

in the survey and the MSCI ACWI.

Sources: Vanguard, based on data from the IMF’s Coordinated Portfolio Investment Survey (2014), Bloomberg, Thomson Reuters

Datastream, and FactSet.

0

80

70

60

50

40

30

20

10

90%

United States Canada United Kingdom Australia Japan

50.9

79.1

3.4

59

7.2

26.3

2.4

66.5

7.2

55.2

Global index weight

Investor holdings in domestic equities

5

Ultimately, I believe we have the best

chance for investment success by giving

ourselves more opportunities, not fewer.

Own the whole haystack and you never

have to worry about finding the needle.

Thank you for entrusting your assets

to Vanguard.

Sincerely,

F. William McNabb III

Chairman and Chief Executive Officer

May 12, 2017

6

1 The expense ratios shown are from the prospectus dated February 24, 2017, and represent estimated costs for the current fiscal year. For the six months ended April 30, 2017, the annualized expense ratios were 0.36% for Investor Shares, 0.15% for ETF Shares, 0.15% for Admiral Shares, and 0.13% for Institutional Shares.

Fund ProfileAs of April 30, 2017

Volatility Measures

S&P

Global

ex-U.S.

Property

Index

MSCI AC

World

Index

ex USA

R-Squared 0.98 0.74

Beta 0.95 0.84

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

Global ex-U.S. Real Estate Index Fund

Share-Class Characteristics

Investor

Shares ETF Shares

Admiral

Shares

Institutional

Shares

Ticker Symbol VGXRX VNQI VGRLX VGRNX

Expense Ratio1 0.35% 0.15% 0.15% 0.13%

7

Portfolio Characteristics

Fund

S&P

Global

ex-U.S.

Property

Index

Number of Stocks 677 648

Median Market Cap $6.1B $6.0B

Price/Earnings Ratio 11.7x 11.7x

Price/Book Ratio 1.1x 1.1x

Return on Equity 10.3% 10.3%

Earnings Growth

Rate 9.6% 9.6%

Dividend Yield 3.5% 3.5%

Turnover Rate

(Annualized) 3% —

Short-Term Reserves -0.3% —

Ten Largest Holdings (% of total net assets)

Mitsubishi Estate Co.

Ltd.

Diversified Real

Estate Activities 2.7%

Unibail-Rodamco SE Retail REITs 2.4

Sun Hung Kai Properties

Ltd.

Diversified Real

Estate Activities 2.4

Mitsui Fudosan Co. Ltd. Diversified Real


Daiwa House Industry

Co. Ltd.

Diversified Real


Cheung Kong Property

Holdings Ltd.

Real Estate

Development 2.0

Scentre Group Retail REITs 1.7

Vonovia SE Real Estate

Operating

Companies 1.7

Link REIT Retail REITs 1.6

Westfield Corp. Retail REITs 1.3

Top Ten 20.0%

The holdings listed exclude any temporary cash investments andequity index products.


8

Allocation by Region (% of equity exposure)

52.0% Pacific

24.9% Europe

19.0% Emerging Markets

2.5% North America

1.0% Middle East

0.6% Other

Market Diversification (% of equity exposure)

Fund

S&PGlobal

ex-U.S.Property

Index

Europe

United Kingdom 7.2% 7.1%

France 5.1 5.0

Germany 4.8 4.8

Sweden 2.0 1.9

Switzerland 1.6 1.5

Spain 1.2 1.2

Other 3.0 2.9

Subtotal 24.9% 24.4%

Pacific

Japan 21.6% 21.6%

Hong Kong 13.3 13.2

Australia 10.2 10.2

Singapore 6.3 6.1

Other 0.6 0.5


Emerging Markets

China 8.3% 8.0%

South Africa 1.8 1.8

Philippines 1.5 1.5

United ArabEmirates 1.2 1.1

Thailand 1.1 0.9

Mexico 1.1 1.0

Other 4.0 4.0


North America

Canada 2.5% 2.4%

Middle East

Israel 1.0% 1.0%

Other 0.6% 2.3%

"Other" represents securities that are not classified by the fund's benchmark index.

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principalvalue can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund

distributions or on the sale of fund shares.

Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares. TheFiscal-Year Total Returns chart is not adjusted for fees.See Financial Highlights for dividend and capital gains information.

Performance Summary


9

Fiscal-Year Total Returns (%): November 1, 2010, Through April 30, 2017

–8.49 –7.48

2011

21.3119.71

2012

14.69 14.79

2013

2.41 1.31

2014

–1.82 –1.10

2015

2.72 2.08

2016

5.26 5.16

2017

Global ex-U.S. Real Estate Index Fund Investor Shares

S&P Global ex-U.S. Property Index

Note: For 2017, performance data reflect the six months ended April 30, 2017.

Average Annual Total Returns: Periods Ended March 31, 2017This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.Securities and Exchange Commission rules require that we provide this information.

InceptionDate

OneYear

FiveYears

SinceInception

Investor Shares 11/1/2010 3.92% 6.69% 4.81%

Fee-Adjusted Returns 3.41 6.60 4.74

ETF Shares 11/1/2010

Market Price 4.50 6.87 4.92

Net Asset Value 4.17 6.84 4.96

Admiral Shares 2/10/2011 4.17 6.86 5.28


Institutional Shares 4/19/2011 4.18 6.88 5.05


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Common Stocks (99.3%)1

Australia (10.1%)

Scentre Group 25,016,031 80,714

Westfield Corp. 8,983,995 61,095

Goodman Group 7,483,842 45,440

Stockland 11,300,992 41,015

Dexus Property Group 4,490,831 34,292

GPT Group 8,435,172 33,134

Vicinity Centres 15,353,665 33,094

LendLease Group 2,711,670 32,555

Mirvac Group 17,348,225 29,466

Investa Office Fund 2,869,013 10,200

Charter Hall Group 1,933,852 8,215

Shopping Centres

Australasia Property

Group 3,386,646 5,859

Charter Hall Retail REIT 1,564,824 5,238

BWP Trust 2,277,473 4,978

Aveo Group 2,011,517 4,744

Cromwell Property Group 6,106,180 4,434

Viva Energy REIT 1,960,696 3,539

Abacus Property Group 1,322,777 3,417

ALE Property Group 845,737 2,995

Growthpoint Properties

Australia Ltd. 1,189,808 2,912

National Storage REIT 2,276,006 2,538

Charter Hall Long Wale

REIT 753,494 2,251

Gateway Lifestyle 1,359,382 2,168

Folkestone Education

Trust 992,378 2,155

GDI Property Group 2,397,874 1,886

Arena REIT 1,051,876 1,677

Ingenia Communities

Group 802,173 1,644

Propertylink Group 2,561,536 1,533

Peet Ltd. 1,642,282 1,525^ Hotel Property

Investments 609,565 1,350

Astro Japan Property

Group 237,527 1,186^ Generation Healthcare

REIT 642,896 1,093

Cedar Woods Properties

Ltd. 239,025 958

Servcorp Ltd. 213,819 943

Industria REIT 551,046 929

Villa World Ltd. 515,027 895

360 Capital Group Ltd. 809,216 576

Sunland Group Ltd. 328,970 425

Aspen Group 450,583 356

Centuria Urban REIT 193,307 329

473,753

Austria (0.7%)

BUWOG AG 329,296 8,893

IMMOFINANZ AG 4,097,407 8,518

CA Immobilien Anlagen

AG 340,553 7,458

S IMMO AG 255,704 3,342

Atrium European Real

Estate Ltd. 792,728 3,338* UBM Development AG 16,427 615

32,164

Belgium (0.8%)

Cofinimmo SA 94,545 11,442* Warehouses De Pauw

CVA 73,831 7,065

Aedifica SA 83,511 6,565

Befimmo SA 107,728 6,287^ Retail Estates NV 29,251 2,390

Intervest Offices

& Warehouses NV 54,250 1,406* Montea SCA 26,838 1,365* Wereldhave Belgium NV 8,750 953

Xior Student Housing NV 15,258 607

38,080

Financial Statements (unaudited)

Statement of Net AssetsAs of April 30, 2017

The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at

the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual

and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with

the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms

N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s

Public Reference Room (see the back cover of this report for further information).


10


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Brazil (0.7%)

Multiplan

Empreendimentos

Imobiliarios SA 586,011 12,499* BR Malls Participacoes

SA 2,388,914 10,575* Iguatemi Empresa de

Shopping Centers SA 380,486 3,976

Aliansce Shopping

Centers SA 301,637 1,432* BR Properties SA 393,353 1,170* Sonae Sierra Brasil SA 94,865 648

Helbor Empreendimentos

SA 689,900 550

30,850

Canada (2.5%)

RioCan REIT 748,585 14,220

H&R REIT 652,282 11,067

First Capital Realty Inc. 646,592 9,398^ Canadian Apartment

Properties REIT 306,639 7,608^ Smart REIT 296,145 7,020

Canadian REIT 166,695 6,030

Allied Properties REIT 197,143 5,290

Cominar REIT 417,350 4,326^ Tricon Capital Group Inc. 508,075 3,997

Granite REIT 109,896 3,942^ Boardwalk REIT 107,202 3,617^ Dream Office REIT 252,831 3,599

Artis REIT 351,645 3,498

Morguard Corp. 24,292 3,434^ Milestone Apartments

REIT 185,732 3,014

Pure Industrial Real Estate

Trust 589,090 2,818

Dream Global REIT 319,533 2,317^ Crombie REIT 209,355 2,224

Choice Properties REIT 209,274 2,133^ Northview Apartment

REIT 116,144 1,936

Killam Apartment REIT 182,069 1,714

NorthWest Healthcare

Properties REIT 193,737 1,529

CT REIT 141,533 1,519* DREAM Unlimited Corp.

Class A 310,127 1,499

Brookfield Canada Office

Properties 61,849 1,473

Morguard REIT 119,332 1,338

InterRent REIT 179,611 1,036

Slate Retail REIT 83,276 913

Dream Industrial REIT 123,373 763

Morguard North American

Residential REIT 67,742 751

Plaza Retail REIT 200,896 706

* Mainstreet Equity Corp. 19,996 540^ Slate Office REIT 87,715 525

Agellan Commercial REIT 60,146 506

OneREIT 164,483 451

116,751

Chile (0.2%)

Parque Arauco SA 2,809,562 7,354

China (8.2%)

China Overseas Land

& Investment Ltd. 20,135,710 58,405

China Resources Land

Ltd. 12,702,446 35,199

Country Garden Holdings

Co. Ltd. 36,129,163 34,361^,* China Evergrande Group 16,749,921 17,865

China Vanke Co. Ltd. 6,181,854 15,665

Sunac China Holdings

Ltd. 8,528,378 11,107^ Fullshare Holdings Ltd. 32,487,635 10,588

Longfor Properties Co.

Ltd. 5,701,208 9,865

Shimao Property

Holdings Ltd. 5,492,164 8,815

Guangzhou R&F

Properties Co. Ltd. 4,746,209 7,989

Sino-Ocean Group

Holding Ltd. 14,035,329 6,847

Shanghai Lujiazui Finance

& Trade Zone

Development Co. Ltd.

Class B 4,118,778 6,569* Future Land Holdings

Co. Ltd. Class A 2,878,159 6,508

Shenzhen Investment

Ltd. 14,124,201 6,401

China Jinmao Holdings

Group Ltd. 19,652,054 6,356^ Agile Group Holdings Ltd. 7,009,409 6,265^,* Goldin Properties

Holdings Ltd. 5,736,020 6,2282 Red Star Macalline Group

Corp. Ltd. 4,992,800 5,337

Yuexiu Property Co. Ltd. 29,347,094 4,975

KWG Property Holding

Ltd. 6,401,658 4,836

SOHO China Ltd. 8,766,045 4,776

CIFI Holdings Group

Co. Ltd. 12,552,000 4,532^,* Zall Group Ltd. 8,021,574 4,486* Poly Property Group

Co. Ltd. 9,170,048 3,757

Shui On Land Ltd. 16,229,038 3,607

Logan Property Holdings

Co. Ltd. 6,085,984 3,485

11


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

K Wah International

Holdings Ltd. 5,220,338 3,313^,* China Logistics Property

Holdings Co. Ltd. 8,797,000 3,190

Hopson Development

Holdings Ltd. 3,218,710 3,065

Yuexiu REIT 5,138,516 3,024

Powerlong Real Estate

Holdings Ltd. 6,290,139 2,959^ China South City

Holdings Ltd. 15,098,111 2,948^,* Greentown China

Holdings Ltd. 2,869,314 2,757^,* Carnival Group

International Holdings

Ltd. 26,204,514 2,694

China SCE Property

Holdings Ltd. 6,990,766 2,640^ Yuzhou Properties

Co. Ltd. 5,783,000 2,637

Joy City Property Ltd. 16,728,045 2,621

C C Land Holdings Ltd. 8,852,500 2,274^,* China Overseas Grand

Oceans Group Ltd. 4,400,386 2,254^,* China Oceanwide

Holdings Ltd. 22,236,000 2,201^ Future Land Development

Holdings Ltd. 7,382,000 2,179

Beijing Capital Land Ltd. 4,261,034 2,069* Tian An China Investment

Co. Ltd. 2,537,761 2,050^,* Renhe Commercial

Holdings Co. Ltd. 77,904,484 1,991^ China Aoyuan Property

Group Ltd. 5,982,000 1,845

Shanghai Jinqiao Export

Processing Zone

Development Co. Ltd.

Class B 1,180,155 1,724

Times Property Holdings

Ltd. 2,398,000 1,670^ Spring REIT 3,983,000 1,663

Road King Infrastructure

Ltd. 1,074,000 1,593* Glorious Property

Holdings Ltd. 13,325,036 1,558^,2 Redco Properties Group

Ltd. 3,862,000 1,514^,* Beijing Enterprises

Medical & Health Group

Ltd. 19,824,000 1,5022 Sunshine 100 China

Holdings Ltd. 3,820,000 1,482

Shanghai Industrial Urban

Development Group Ltd. 6,718,799 1,449

^ LVGEM China Real Estate

Investment Co. Ltd. 5,260,000 1,351* Gemdale Properties

& Investment Corp. Ltd. 18,654,000 1,317^,* Ronshine China Holdings

Ltd. 1,373,500 1,215^,* Greenland Hong Kong

Holdings Ltd. 3,749,000 1,209

Beijing North Star

Co. Ltd. 3,006,000 1,162

Shanghai Shibei Hi-Tech

Co. Ltd. Class B 1,015,000 1,074

Yida China Holdings Ltd. 4,490,000 1,068

Guorui Properties Ltd. 3,545,000 1,052* Sinolink Worldwide

Holdings Ltd. 9,734,643 1,051* Mingfa Group

International Co. Ltd. 4,231,908 1,028

Fantasia Holdings Group

Co. Ltd. 6,352,443 1,003* China Electronics Optics

Valley Union Holding

Co. Ltd. 10,552,000 989^,* China Merchants Land

Ltd. 5,230,000 974^,* Jiayuan International

Group Ltd. 2,048,000 942

Hydoo International

Holding Ltd. 7,670,000 768

Nam Tai Property Inc. 97,466 7652 China Vast Industrial

Urban Development

Co. Ltd. 2,017,000 747* Wuzhou International

Holdings Ltd. 7,102,000 721

Xinyuan Real Estate

Co. Ltd. ADR 147,478 687

Central China Real Estate

Ltd. 2,792,000 681* EverChina International

Holdings Co. Ltd. 21,539,331 673^,* Crown International Corp.

Ltd. 3,270,000 588* Greattown Holdings Ltd.

Class B 693,993 549^,* China Minsheng Drawin

Technology Group Ltd. 16,500,000 524* SRE Group Ltd. 21,628,000 522^,* Ping An Securities Group

Holdings Ltd. 53,420,000 500* Shanghai Huili Building

Materials Co. Ltd.

Class B 363,700 457* AVIC International

Holding HK Ltd. 7,310,000 408

12


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

* China Properties

Investment Holdings

Ltd. 28,404,600 405* Guangdong Land

Holdings Ltd. 1,780,000 403* Beijing Properties

Holdings Ltd. 7,442,000 387* China New City

Commercial

Development Ltd. 2,068,000 383* Shenzhen Wongtee

International Enterprise

Co. Ltd. Class B 654,562 378* Shanghai Zendai

Property Ltd. 21,210,000 321

383,992

Denmark (0.0%) * TK Development A/S 313,572 533

Egypt (0.1%) * Talaat Moustafa Group 4,424,860 1,986* Medinet Nasr Housing 1,033,284 1,200* Palm Hills Developments

SAE 5,065,285 831

Heliopolis Housing 489,096 702* Six of October

Development

& Investment 836,073 631* Emaar Misr for

Development SAE 2,888,419 391

5,741

Finland (0.2%)

Sponda Oyj 985,190 4,346

Citycon Oyj 1,735,418 4,267

Technopolis Oyj 580,784 1,947

10,560

France (5.0%)

Unibail-Rodamco SE 466,667 114,586^,* Klepierre 974,743 38,259

Gecina SA 189,483 26,950

Fonciere Des Regions 249,765 22,291^ ICADE 209,642 15,567

Nexity SA 176,915 9,619^ Mercialys SA 259,563 5,057* Altarea SCA 12,077 2,435

234,764

Germany (4.8%)

Vonovia SE 2,188,787 79,243

Deutsche Wohnen AG 1,656,405 56,638

LEG Immobilien AG 294,962 25,341

TAG Immobilien AG 681,609 9,705

Grand City Properties SA 487,775 9,265

Deutsche EuroShop AG 227,758 9,247

alstria office REIT-AG 482,781 6,385

TLG Immobilien AG 306,980 6,2122 ADO Properties SA 141,265 5,171* Hamborner REIT AG 377,909 3,967* PATRIZIA Immobilien AG 189,960 3,748

VIB Vermoegen AG 127,172 3,044

DIC Asset AG 230,388 2,364* WCM Beteiligungs

& Grundbesitz-AG 523,913 1,828^,* ADLER Real Estate AG 99,289 1,558

223,716

Greece (0.1%)

Grivalia Properties

REIC AE 164,879 1,533* LAMDA Development SA 194,763 985

2,518

Hong Kong (13.3%)

Sun Hung Kai Properties

Ltd. 7,492,441 112,274

Cheung Kong Property

Holdings Ltd. 12,875,375 92,177

Link REIT 10,413,089 74,849

Wharf Holdings Ltd. 5,712,000 48,701

Hongkong Land Holdings

Ltd. 5,529,312 42,614

Henderson Land

Development Co. Ltd. 5,801,320 36,725

New World Development

Co. Ltd. 25,927,000 32,240

Wheelock & Co. Ltd. 3,715,652 28,943

Hang Lung Properties

Ltd. 9,664,932 25,324

Sino Land Co. Ltd. 14,458,605 24,468

Hang Lung Group Ltd. 4,065,103 16,951

Swire Properties Ltd. 4,948,600 16,590

Hysan Development

Co. Ltd. 2,925,655 13,798

Kerry Properties Ltd. 2,834,332 10,596

Champion REIT 9,993,512 6,498

Great Eagle Holdings Ltd. 1,188,697 5,895* Wang On Properties Ltd. 17,440,000 3,782^ Chinese Estates Holdings

Ltd. 2,281,452 3,505

Sunlight REIT 4,788,400 2,972

SEA Holdings Ltd. 1,066,000 2,677

Far East Consortium

International Ltd. 4,875,000 2,324

Prosperity REIT 5,606,649 2,277

Kowloon Development

Co. Ltd. 1,744,414 1,930* HKR International Ltd. 3,322,882 1,793^ Langham Hospitality

Investments and

Langham Hospitality

Investments Ltd. 4,012,500 1,660

13


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Lai Sun Development

Co. Ltd. 56,115,453 1,579

Liu Chong Hing

Investment Ltd. 932,000 1,471

Emperor International

Holdings Ltd. 4,309,832 1,330

Regal REIT 4,100,815 1,201

CSI Properties Ltd. 21,998,348 1,159

Soundwill Holdings Ltd. 381,500 943

Chuang’s Consortium

International Ltd. 4,120,000 852

Wang On Group Ltd. 32,000,000 288^,* Man Sang International

Ltd. 4,616,000 279* Dan Form Holdings

Co. Ltd. 329,908 33

620,698

India (0.4%) * DLF Ltd. 1,922,515 5,561* Indiabulls Real Estate Ltd. 1,145,340 2,665* Oberoi Realty Ltd. 346,292 2,138* Prestige Estates Projects

Ltd. 505,152 1,854* Godrej Properties Ltd. 247,380 1,786* Housing Development

& Infrastructure Ltd. 1,230,332 1,736

Phoenix Mills Ltd. 246,536 1,588

Sobha Ltd. 160,061 921* Unitech Ltd. 8,622,320 756

Mahindra Lifespace

Developers Ltd. 105,318 724

Omaxe Ltd. 193,009 578

20,307

Indonesia (0.8%)

Bumi Serpong Damai

Tbk PT 43,266,427 5,796

Ciputra Development

Tbk PT 59,563,191 5,712* Lippo Karawaci Tbk PT 85,471,400 5,062

Pakuwon Jati Tbk PT 107,874,528 5,045

Summarecon Agung

Tbk PT 41,795,800 4,254* Hanson International

Tbk PT 261,619,500 2,724

PP Properti Tbk PT 101,647,807 2,011* Kawasan Industri

Jababeka Tbk PT 79,016,483 1,954* Alam Sutera Realty

Tbk PT 51,492,397 1,341

Intiland Development

Tbk PT 29,107,051 960* Modernland Realty

Tbk PT 37,306,000 788

Puradelta Lestari Tbk PT 30,354,200 546

* Lippo Cikarang Tbk PT 1,583,900 532* Sentul City Tbk PT 76,351,300 504

Bekasi Fajar Industrial

Estate Tbk PT 18,193,882 403* Agung Podomoro Land

Tbk PT 22,535,400 355

37,987

Ireland (0.2%)

Green REIT plc 3,267,572 4,858

Hibernia REIT plc 3,199,460 4,442

Irish Residential

Properties REIT plc 1,662,750 2,372

11,672

Israel (1.0%) * Azrieli Group Ltd. 170,041 9,045

Gazit-Globe Ltd. 446,766 4,524

Melisron Ltd. 82,556 4,496

Alony Hetz Properties

& Investments Ltd. 460,862 4,268* Airport City Ltd. 274,983 3,639

Reit 1 Ltd. 789,013 2,669

Amot Investments Ltd. 559,717 2,666* Brack Capital Properties

NV 22,224 2,110* Jerusalem Economy Ltd. 697,934 1,714

Norstar Holdings Inc. 77,682 1,594* Summit Real Estate

Holdings Ltd. 163,929 1,219

Big Shopping Centers

Ltd. 16,035 1,159* Africa Israel Properties

Ltd. 55,034 1,108

Blue Square Real Estate

Ltd. 22,519 1,058

Sella Capital Real Estate

Ltd. 571,398 1,055* Alrov Properties and

Lodgings Ltd. 36,740 1,006* Property & Building Corp.

Ltd. 9,286 901* ADO Group Ltd. 64,164 802* Africa Israel Investments

Ltd. —

45,033

Italy (0.1%)

Beni Stabili SpA SIIQ 4,777,843 3,033

Immobiliare Grande

Distribuzione SIIQ SPA 1,366,479 1,223

4,256

Japan (21.5%)

Mitsubishi Estate Co. Ltd. 6,533,645 125,105

Mitsui Fudosan Co. Ltd. 4,647,457 102,255

Daiwa House Industry

Co. Ltd. 3,132,174 93,116

14


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Sumitomo Realty

& Development Co. Ltd. 2,236,167 60,411

Daito Trust Construction

Co. Ltd. 365,900 53,843

Nippon Building Fund Inc. 6,644 35,334

Japan Real Estate

Investment Corp. 5,859 30,853

Nomura Real Estate

Master Fund Inc. 19,571 28,208

Japan Retail Fund


United Urban Investment

Corp. 14,364 21,702

Hulic Co. Ltd. 2,275,044 21,455

Orix JREIT Inc. 12,572 19,937

Nippon Prologis REIT Inc. 8,938 18,887^ Daiwa House REIT


Advance Residence


Japan Prime Realty


GLP J-Reit 13,346 15,041

Activia Properties Inc. 3,120 14,865

Tokyo Tatemono Co. Ltd. 1,011,283 13,816

Tokyu Fudosan Holdings

Corp. 2,392,356 13,065

Japan Hotel REIT


Kenedix Office


Nomura Real Estate

Holdings Inc. 590,129 9,982

Nippon Accommodations

Fund Inc. 2,275 9,772

Frontier Real Estate


Aeon Mall Co. Ltd. 533,983 9,081

Japan Logistics Fund Inc. 4,197 8,955

Mori Hills REIT

Investment Corp. 6,537 8,494^ Industrial & Infrastructure

Fund Investment Corp. 1,831 8,080^ Daiwa Office Investment

Corp. 1,537 7,489

Japan Excellent Inc. 6,152 7,200

Hulic Reit Inc. 4,402 7,069

AEON REIT Investment

Corp. 6,438 7,039^ Mori Trust Sogo Reit Inc. 4,484 7,004

Leopalace21 Corp. 1,251,150 6,650

Invincible Investment

Corp. 15,922 6,099

Tokyu REIT Inc. 4,582 5,684

Premier Investment Corp. 5,259 5,656

Fukuoka REIT Corp. 3,544 5,594^ Japan Rental Housing

Investments Inc. 7,743 5,565^ Sekisui House SI

Residential Investment

Corp. 5,186 5,469

Comforia Residential

REIT Inc. 2,431 5,384

Kenedix Retail REIT Corp. 2,337 5,090

Sekisui House Reit Inc. 3,921 5,004

LaSalle Logiport REIT 5,205 4,944

NIPPON REIT Investment

Corp. 1,836 4,715

NTT Urban Development

Corp. 510,500 4,607

Kenedix Residential


Ichigo Office REIT

Investment 7,160 4,053^ Hoshino Resorts REIT Inc. 774 3,930

MCUBS MidCity


TOC Co. Ltd. 424,229 3,862

Hankyu Reit Inc. 2,827 3,720

Heiwa Real Estate REIT

Inc. 4,824 3,653

Global One Real Estate


Invesco Office J-Reit Inc. 3,848 3,390

Daikyo Inc. 1,429,050 2,976

Heiwa Real Estate

Co. Ltd. 160,332 2,557

Daibiru Corp. 272,057 2,511

Mitsui Fudosan Logistics

Park Inc. 855 2,497^ Unizo Holdings Co. Ltd. 85,200 2,174^,* Mirai Corp. 1,422 1,915

Takara Leben Co. Ltd. 399,352 1,877^ SIA Reit Inc. 836 1,435^ Starts Proceed


Goldcrest Co. Ltd. 77,340 1,375

Star Asia Investment

Corp. 1,392 1,222

Keihanshin Building

Co. Ltd. 202,300 1,158^ Ichigo Hotel REIT


Sakura Sogo REIT

Investment Corp. 1,415 991^ Shinoken Group Co. Ltd. 49,900 930

Tosei Corp. 129,500 916^ Samty Residential

Investment Corp. 1,249 912

15


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Sun Frontier Fudousan

Co. Ltd. 94,000 822* Mori Trust Hotel Reit Inc. 587 800^,* Ardepro Co. Ltd. 604,600 743^ Tosei Reit Investment

Corp. 796 731^ Health Care & Medical

Investment Corp. 776 673^ Nippon Commercial

Development Co. Ltd. 38,800 655

Tokyo Rakutenchi Co. Ltd. 135,000 634^ Japan Property

Management Center

Co. Ltd. 51,800 611^ SAMTY Co. Ltd. 61,000 606

Ooedo Onsen Reit

Investment Corp. 748 594

Airport Facilities Co. Ltd. 110,700 580^ Arealink Co. Ltd. 41,500 567^ Nippon Healthcare

Investment Corp. 330 487^ Tokyo Theatres Co. Inc. 354,017 473^ Japan Senior Living

Investment Corp. 360 428

1,006,345

Malaysia (0.6%)

IOI Properties Group

Bhd. 8,427,500 4,018

Sunway Bhd. 3,557,204 2,844

KLCCP Stapled Group 1,392,370 2,511

IGB REIT 5,812,100 2,275

SP Setia Bhd Group 2,262,860 1,906

Sunway REIT 4,857,934 1,902

Mah Sing Group Bhd. 5,274,525 1,810

UEM Sunrise Bhd. 5,241,565 1,496

Eastern & Oriental Bhd. 3,284,656 1,437* Eco World Development

Group Bhd. 3,767,300 1,318

Capitaland Malaysia Mall

Trust 3,713,700 1,275

UOA Development Bhd. 1,722,700 1,065

Pavilion REIT 2,632,700 1,056

Matrix Concepts Holdings

Bhd. 1,695,483 1,012

Axis REIT 2,406,100 910* YNH Property Bhd. 1,724,359 608

LBS Bina Group Bhd. 1,158,900 558* KSL Holdings Bhd. 1,802,900 506* KIP REIT 2,237,500 497

Tropicana Corp. Bhd. 1,730,667 393* Eco World Development

Group Bhd Warrants

Exp. 03/26/2022 450,320 51

* Eastern & Oriental Bhd

Warrants Exp.

07/21/2019 438,840 23* Matrix Concepts Holdings

Bhd. Warrants Exp.

07/20/2020 133,683 14* Mah Sing Group Warrants

Exp. 01/15/2026 264,345 9* Mah Sing Group Bhd.

Warrants Exp.

03/18/2018 156,256 6

29,500

Mexico (1.1%)

Fibra Uno Administracion

SA de CV 12,439,212 21,726

Concentradora Fibra

Danhos SA de CV 4,456,425 7,689

PLA Administradora

Industrial S de RL

de CV 2,827,341 4,770

Macquarie Mexico Real

Estate Management

SA de CV 3,855,946 4,226

Corp Inmobiliaria Vesta

SAB de CV 2,537,200 3,576

Prologis Property Mexico

SA de CV 1,608,900 2,732* Grupo GICSA SA de CV 2,209,703 1,427

Fibra Shop Portafolios

Inmobiliarios SAPI

de CV 1,649,918 1,202

Concentradora Fibra

Hotelera Mexicana SA

de CV 1,413,175 1,157

Asesor de Activos Prisma

SAPI de CV 1,520,700 913

49,418

Netherlands (0.5%)

Eurocommercial

Properties NV 230,072 8,939^ Wereldhave NV 187,361 8,627

Vastned Retail NV 90,592 3,384

NSI NV 677,464 2,860

Echo Polska Properties

NV 942,041 1,361

25,171

New Zealand (0.5%)

Kiwi Property Group Ltd. 6,090,468 5,960

Goodman Property Trust 4,728,796 3,964

Precinct Properties New

Zealand Ltd. 4,706,400 3,891

Argosy Property Ltd. 3,912,437 2,714

16


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

^ Vital Healthcare Property

Trust 1,550,788 2,343

Property for Industry Ltd. 2,032,995 2,277

Stride Property Group 1,706,769 2,054^ Investore Property Ltd. 924,437 837

24,040

Norway (0.2%) 2 Entra ASA 373,030 4,279

Olav Thon

Eiendomsselskap ASA 143,852 2,823

Norwegian Property ASA 1,073,969 1,266

Selvaag Bolig ASA 181,004 749

9,117

Other (0.5%) 3 Vanguard REIT ETF 269,000 22,271

Philippines (1.5%) * SM Prime Holdings Inc. 54,284,905 32,380

Ayala Land Inc. 27,671,800 19,555

Megaworld Corp. 58,859,000 4,784

Robinsons Land Corp. 7,477,550 3,842* DoubleDragon Properties

Corp. 2,775,460 2,889

Vista Land & Lifescapes

Inc. 19,964,278 2,114

Filinvest Land Inc. 45,005,000 1,561

Belle Corp. 17,410,800 1,430

68,555

Poland (0.0%) * Globe Trade Centre SA 895,884 2,124

Qatar (0.2%)

United Development Co.

QSC 779,066 4,102

Barwa Real Estate Co. 436,815 4,083* Mazaya Qatar Real Estate

Development QSC 249,413 866

9,051

Russia (0.1%) * LSR Group PJSC GDR 930,546 3,086

Etalon Group Ltd. GDR 370,031 1,424

4,510

Singapore (6.3%) * CapitaLand Ltd. 12,172,738 32,707

Global Logistic Properties

Ltd. 13,870,631 28,576

City Developments Ltd. 2,895,390 22,343

Ascendas REIT 11,387,961 20,872

CapitaLand Mall Trust 12,585,334 17,747

Suntec REIT 11,970,627 15,159

UOL Group Ltd. 2,766,678 14,330

CapitaLand Commercial

Trust 9,902,582 11,509

Mapletree Commercial

Trust 8,359,533 9,545

Fortune REIT 6,344,861 7,371^ Mapletree Industrial Trust 5,507,234 7,055

Mapletree Greater China

Commercial Trust 8,618,480 6,598

Keppel REIT 8,340,615 6,327

Mapletree Logistics Trust 7,110,429 5,752

Ascott Residence Trust 5,560,486 4,358

Yanlord Land Group Ltd. 3,125,604 4,172

Frasers Centrepoint Trust 2,666,141 4,029

CapitaLand Retail China

Trust 3,250,786 3,699

CDL Hospitality Trusts 3,219,102 3,573

Frasers Logistics

& Industrial Trust 4,943,600 3,571

Starhill Global REIT 6,334,468 3,490

Parkway Life REIT 1,853,755 3,399

Keppel DC REIT 3,721,013 3,298

OUE Hospitality Trust 5,518,600 2,843

Lippo Malls Indonesia

Retail Trust 8,952,106 2,724

Ascendas India Trust 3,236,166 2,667^ AIMS AMP Capital

Industrial REIT 2,659,076 2,655

Wing Tai Holdings Ltd. 1,962,010 2,653

Frasers Commercial Trust 2,753,567 2,642

Croesus Retail Trust 3,561,100 2,484

SPH REIT 3,508,000 2,474

Cache Logistics Trust 3,974,205 2,460

First REIT 2,396,854 2,314

Manulife US REIT 2,732,500 2,296

Cambridge Industrial

Trust 5,274,409 2,213

Ascendas Hospitality

Trust 3,950,400 2,202

Frasers Centrepoint Ltd. 1,614,300 2,194^ Yoma Strategic Holdings

Ltd. 5,135,018 2,129^,* United Industrial Corp.

Ltd. 931,788 2,107^ Sinarmas Land Ltd. 5,968,800 1,943

Wheelock Properties

Singapore Ltd. 1,339,669 1,787^ GuocoLand Ltd. 1,264,377 1,652

Far East Hospitality Trust 3,781,592 1,625^ Ho Bee Land Ltd. 893,403 1,559^ Soilbuild Business Space

REIT 2,899,660 1,379

Sabana Shari’ah

Compliant Industrial

REIT 4,113,872 1,339

OUE Commercial REIT 2,610,700 1,309

17


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

^ Perennial Real Estate

Holdings Ltd. 1,903,578 1,206* Ying Li International Real

Estate Ltd. 5,403,400 541

292,877

South Africa (1.8%)

Growthpoint Properties

Ltd. 10,862,148 20,817

Redefine Properties Ltd. 23,425,323 19,281

Resilient REIT Ltd. 1,565,909 13,643

Hyprop Investments Ltd. 1,005,776 9,287* Attacq Ltd. 3,250,564 4,137

Vukile Property Fund Ltd. 2,740,770 3,891

SA Corporate Real Estate

Ltd. 8,529,715 3,506

Arrowhead Properties

Ltd. 4,213,123 2,783

Emira Property Fund Ltd. 2,145,869 2,248

Rebosis Property Fund

Ltd. 2,206,141 2,012

Octodec Investments Ltd. 853,909 1,525

Delta Property Fund Ltd. 2,142,622 1,406

Balwin Properties Ltd. 955,253 522

Hospitality Property Fund

Ltd. Class B 24,739 26

85,084

South Korea (0.0%) ^ SK D&D Co. Ltd. 31,967 775

Dongwon Development

Co. Ltd. 154,521 622

1,397

Spain (1.1%)

Merlin Properties Socimi

SA 2,209,021 26,123* Inmobiliaria Colonial SA 1,393,561 10,806

Hispania Activos

Inmobiliarios SOCIMI SA 504,618 7,619

Axiare Patrimonio

SOCIMI SA 300,651 4,986* Lar Espana Real Estate

Socimi SA 414,794 3,429^,* Realia Business SA 1,008,016 1,068

54,031

Sweden (2.0%)

Castellum AB 1,284,043 17,585

Fabege AB 653,724 11,257* Fastighets AB Balder

Class B 444,750 9,930^,* Wallenstam AB 1,025,733 8,740

Hufvudstaden AB Class A 549,703 8,612

Hemfosa Fastigheter AB 739,853 6,855^,* Wihlborgs Fastigheter AB 324,018 6,312^,* Kungsleden AB 881,393 4,935* Atrium Ljungberg AB 227,246 3,759

Sagax AB Class B 340,825 3,541* Klovern AB 2,180,835 2,297* Dios Fastigheter AB 396,589 2,033* D Carnegie & Co. AB

Class B 161,901 1,965* Victoria Park AB Class B 560,737 1,563

NP3 Fastigheter AB 213,932 1,193* Catena AB 78,874 1,162* Platzer Fastigheter

Holding AB Class B 214,916 1,067^,* Magnolia Bostad AB 69,451 584* Tribona AB 129,122 —

93,390

Switzerland (1.5%) * Swiss Prime Site AG 335,930 29,123* PSP Swiss Property AG 189,377 16,979* Allreal Holding AG 66,690 11,475

Mobimo Holding AG 28,963 7,787* Intershop Holding AG 6,501 3,131* Zug Estates Holding AG

Class B 1,148 2,019* Hiag Immobilien Holding

AG 12,238 1,511* Investis Holding SA 12,083 735

72,760

Taiwan (0.7%)

Highwealth Construction

Corp. 4,033,544 6,799* Ruentex Development

Co. Ltd. 4,129,729 5,040

Huaku Development

Co. Ltd. 997,854 2,288

Prince Housing

& Development Corp. 5,201,478 2,060* Shin Kong No.1 REIT 4,353,000 2,033

Chong Hong Construction

Co. Ltd. 855,297 1,994

Farglory Land

Development Co. Ltd. 1,094,631 1,484

Cathay Real Estate

Development Co. Ltd. 2,018,100 1,355* Radium Life Tech

Co. Ltd. 2,857,947 1,345

Hung Sheng

Construction Ltd. 1,711,000 1,094

Taiwan Land

Development Corp. 2,777,450 1,040

Kindom Construction

Corp. 1,584,000 999

Huang Hsiang

Construction Corp. 579,000 842

Kuoyang Construction

Co. Ltd. 1,689,665 772

Hong Pu Real Estate

Development Co. Ltd. 784,194 637

18


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

KEE TAI Properties

Co. Ltd. 1,695,869 623* Shining Building Business

Co. Ltd. 1,642,971 577

30,982

Thailand (1.1%) * Central Pattana PCL 6,301,700 10,920* Land & Houses PCL

(Local) 16,474,700 4,902

CPN Retail Growth

Leasehold Property

Fund 7,683,810 4,154

Tesco Lotus Retail

Growth Freehold

& Leasehold Property

Fund 8,169,212 3,969* WHA Corp. PCL (Local) 24,816,930 2,252* Supalai PCL 3,068,605 2,181* Bangkok Land PCL

(Local) 39,759,700 2,149

Samui Airport Property

Fund Leasehold 3,155,875 2,053* Pruksa Real Estate PCL 3,024,500 1,771* IMPACT Growth REIT 3,617,900 1,516* Quality Houses PCL 20,461,000 1,512* Amata Corp. PCL 2,347,600 1,167* Golden Ventures

Leasehold REIT 2,744,000 1,039

TICON Property Fund 3,216,000 948* Ananda Development

PCL 6,594,800 941* U City PCL 1,059,490,500 919

Sansiri PCL 14,694,200 891* Singha Estate PCL

(Local) 5,832,336 842* LPN Development PCL 2,447,500 827* Platinum Group PCL 3,319,400 681* Siam Future

Development PCL 3,772,367 676^ TICON Industrial

Connection PCL NVDR 1,597,580 645

CP Tower Growth

Leasehold Property

Fund 1,573,200 550* AP Thailand PCL 2,348,150 539* Sansiri PCL (Local) 7,873,000 478* Country Group

Development PCL 15,806,100 452^,* WHA Corp. PCL (Foreign) 4,759,678 432* Thailand Prime Property

Freehold and Leasehold

REIT 1,140,000 395* TICON Industrial

Connection PCL (Local) 861,000 348

Asian Property

Development PCL

(Foreign) 1,513,270 347* Property Perfect PCL

(Local) 12,008,800 319

Univentures PCL

(Foreign) 1,577,100 316* SC Asset Corp. PCL

(Local) 3,071,925 312^,* Rojana Industrial Park

PCL NVDR 1,541,382 265* SC Asset Corp. PCL

(Foreign) 2,526,712 257

Sansiri PCL (Foreign) 4,060,798 246

Bangkok Land PCL

(Foreign) 4,269,495 231* Univentures PCL (Local) 1,067,500 214^ Land & Houses PCL

(Foreign) 481,300 145* Pruksa Holding PCL 186,200 121* Rojana Industrial Park PCL 495,412 85^,* SC Asset Corp.

PCL NVDR 831,300 84* Rojana Industrial Park PCL

(Foreign) 481,328 83

Property Perfect PCL

(Foreign) 2,742,000 73

Singha Estate PCL

(Foreign) 253,164 37* WHA Corp. PCL Warrants

Exp. 12/31/2019 108,341 23

TICON Industrial

Connection PCL

(Foreign) 50,093 20* Sansiri PLC Foreign

Warrants Exp.

11/24/2017 3,159,666 7* Sansiri PLC NVDR

Warrants Exp.

11/24/2017 2,936,700 7* Raimon Land PCL

Warrants Exp.

06/14/2018 1,271,475 5

53,346

Turkey (0.2%)

Emlak Konut Gayrimenkul

Yatirim Ortakligi AS 9,066,182 7,527

Is Gayrimenkul Yatirim

Ortakligi AS 2,203,314 862* AKIS Gayrimenkul

Yatirimi AS 773,131 627

Torunlar Gayrimenkul

Yatirim Ortakligi AS 336,025 491

9,507

19


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

United Arab Emirates (1.1%) * Emaar Properties PJSC 15,752,989 30,763

Aldar Properties PJSC 14,122,044 8,221* Emaar Malls PJSC 8,765,603 6,135* DAMAC Properties Dubai

Co. PJSC 7,606,470 5,301* Eshraq Properties Co.

PJSC 4,843,428 1,543* Deyaar Development

PJSC 6,299,477 926

RAK Properties PJSC 3,737,594 621

53,510

United Kingdom (7.5%)

Land Securities Group plc 3,716,932 53,233

British Land Co. plc 4,805,347 40,861

Segro plc 4,668,269 29,363

Hammerson plc 3,724,246 28,336

Derwent London plc 520,657 19,847

Shaftesbury plc 1,303,802 15,736

Intu Properties plc 4,229,924 15,108

Great Portland Estates plc 1,599,041 14,328^ Capital & Counties

Properties plc 3,502,785 14,325^ Tritax Big Box REIT plc 5,132,092 9,307

UNITE Group plc 1,032,623 8,655

F&C Commercial Property

Trust Ltd. 3,711,620 7,293

LondonMetric Property

plc 3,234,464 7,055

Big Yellow Group plc 690,906 6,927

Grainger plc 1,932,102 6,250

Workspace Group plc 550,094 6,161

Assura plc 7,614,052 6,044

Hansteen Holdings plc 3,445,936 5,528

Safestore Holdings plc 968,098 5,082

NewRiver REIT plc 1,083,192 4,884

St. Modwen Properties

plc 899,268 4,258^ Primary Health Properties

plc 2,811,955 4,124

Daejan Holdings plc 42,307 3,718

UK Commercial Property

Trust Ltd. 3,089,609 3,550

Empiric Student Property

plc 2,189,305 3,106

Redefine International

PLC 5,865,014 2,906

Picton Property Income

Ltd. 2,496,443 2,725

Helical plc 510,292 2,188

Schroder REIT Ltd. 2,460,218 2,088

MAS Real Estate Inc. 1,148,043 1,924

CLS Holdings plc 73,538 1,847

* Raven Russia Ltd. 2,855,867 1,823

Urban & Civic plc 502,245 1,730

Mucklow A & J Group plc 273,739 1,701

Capital & Regional plc 2,060,422 1,6082 Regional REIT Ltd. 1,083,776 1,502

U & I Group plc 592,542 1,459

McKay Securities plc 466,693 1,414* Civitas Social Housing plc 800,868 1,141* Tritax Big Box Rights

Exp. 05/10/2017 459,216 24

349,159

Total Common Stocks

(Cost $4,737,723) 4,646,874

Temporary Cash Investments (3.2%)1

Money Market Fund (3.2%)4,5 Vanguard Market Liquidity

Fund, 1.034% 1,477,249 147,754

Face

Amount

($000)

U.S. Government and Agency Obligations (0.0%) 6 United States Treasury Bill,

0.540%, 5/18/17 300 3006 United States Treasury Bill,


0.551%–0.729%, 6/8/17 500 5006 United States Treasury Bill,


0.647%, 8/10/17 300 299

1,898

Total Temporary Cash Investments

(Cost $149,636) 149,652

Total Investments (102.5%)

(Cost $4,887,359) 4,796,526

20


Amount

($000)

Amount

($000)

Other Assets and Liabilities (-2.5%)

Other Assets

Investment in Vanguard 299

Receivables for Investment Securities Sold 77

Receivables for Accrued Income 18,369

Receivables for Capital Shares Issued 218

Other Assets 4,167

Total Other Assets 23,130

Liabilities

Payables for Investment Securities

Purchased (10,481)

Collateral for Securities on Loan (127,799)

Payables for Capital Shares Redeemed (222)

Payables to Vanguard (1,426)

Other Liabilities (517)

Total Liabilities (140,445)

Net Assets (100%) 4,679,211

At April 30, 2017, net assets consisted of:

Amount

($000)

Paid-in Capital 4,889,010

Overdistributed Net Investment Income (20,883)

Accumulated Net Realized Losses (98,482)

Unrealized Appreciation (Depreciation)

Investment Securities (90,833)

Futures Contracts 507

Foreign Currencies (108)

Net Assets 4,679,211

Investor Shares—Net Assets

Applicable to 2,819,692 outstanding

$.001 par value shares of beneficial

interest (unlimited authorization) 61,355

Net Asset Value Per Share—

Investor Shares $21.76

ETF Shares—Net Assets



interest (unlimited authorization) 4,035,618


ETF Shares $54.40

Admiral Shares—Net Assets





Admiral Shares $32.97

Institutional Shares—Net Assets





Institutional Shares $109.84

• See Note A in Notes to Financial Statements.

^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $119,025,000.

* Non-income-producing security.

1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 100.1% and 2.4%, respectively, of net assets.

2 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2017, the aggregate value of these securities was $20,032,000, representing 0.4% of net assets.

3 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.

4 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

5 Includes $127,799,000 of collateral received for securities on loan.

6 Securities with a value of $1,698,000 have been segregated as initial margin for open futures contracts.

ADR—American Depositary Receipt.

GDR—Global Depositary Receipt.

NVDR—Non-Voting Depository Receipt.

REIT—Real Estate Investment Trust.

See accompanying Notes, which are an integral part of the Financial Statements.

21

Six Months Ended

April 30, 2017

($000)

Investment Income

Income

Dividends1,2 63,341

Interest2 50

Securities Lending—Net 1,444

Total Income 64,835

Expenses

The Vanguard Group—Note B

Investment Advisory Services 421

Management and Administrative—Investor Shares 81

Management and Administrative—ETF Shares 1,424

Management and Administrative—Admiral Shares 163

Management and Administrative—Institutional Shares 62

Marketing and Distribution—Investor Shares 6

Marketing and Distribution—ETF Shares 127

Marketing and Distribution—Admiral Shares 17

Marketing and Distribution—Institutional Shares 2

Custodian Fees 617

Shareholders’ Reports—Investor Shares 3

Shareholders’ Reports—ETF Shares 181

Shareholders’ Reports—Admiral Shares 4

Shareholders’ Reports—Institutional Shares —

Trustees’ Fees and Expenses 1

Total Expenses 3,109

Net Investment Income 61,726

Realized Net Gain (Loss)

Investment Securities Sold2 40,625

Futures Contracts 1,932

Foreign Currencies (765)

Realized Net Gain (Loss) 41,792

Change in Unrealized Appreciation (Depreciation)

Investment Securities 99,248

Futures Contracts 616

Foreign Currencies 327

Change in Unrealized Appreciation (Depreciation) 100,191

Net Increase (Decrease) in Net Assets Resulting from Operations 203,709

1 Dividends are net of foreign withholding taxes of $5,985,000.

2 Dividend income, interest income, and realized net gain (loss) from affiliated companies of the fund were $100,000, $46,000, and $3,000, respectively.

Statement of Operations



22

Statement of Changes in Net Assets



Six Months Ended Year Ended

April 30, October 31,

2017 2016

($000) ($000)

Increase (Decrease) in Net Assets

Operations

Net Investment Income 61,726 129,127

Realized Net Gain (Loss) 41,792 (31,723)

Change in Unrealized Appreciation (Depreciation) 100,191 3,273

Net Increase (Decrease) in Net Assets Resulting from Operations 203,709 100,677

Distributions

Net Investment Income

Investor Shares (1,752) (1,787)

ETF Shares (106,954) (110,683)

Admiral Shares (11,402) (11,538)

Institutional Shares (5,051) (5,506)

Realized Capital Gain

Investor Shares — —

ETF Shares — —

Admiral Shares — —

Institutional Shares — —

Total Distributions (125,159) (129,514)

Capital Share Transactions

Investor Shares 1,026 1,259

ETF Shares 355,078 531,472

Admiral Shares 20,801 25,946

Institutional Shares 11,053 (2,165)

Net Increase (Decrease) from Capital Share Transactions 387,958 556,512

Total Increase (Decrease) 466,508 527,675

Net Assets

Beginning of Period 4,212,703 3,685,028

End of Period1 4,679,211 4,212,703

1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($20,883,000) and $20,409,000.

23

Investor Shares

Six Months

Ended

For a Share Outstanding April 30, Year Ended October 31,

Throughout Each Period 2017 2016 2015 2014 2013 2012

Net Asset Value, Beginning of Period $21.35 $21.44 $22.63 $23.06 $21.04 $18.14

Investment Operations

Net Investment Income .328 .6551 .683 .944 .6851 .7001

Net Realized and Unrealized Gain (Loss)

on Investments2 .723 (.088) (1.103) (.443) 2.321 2.995

Total from Investment Operations 1.051 .567 (.420) .501 3.006 3.695

Distributions

Dividends from Net Investment Income (.641) (.657) (.770) (.931) (.986) (.795)

Distributions from Realized Capital Gains — — — — — —

Total Distributions (.641) (.657) (.770) (.931) (.986) (.795)

Net Asset Value, End of Period $21.76 $21.35 $21.44 $22.63 $23.06 $21.04

Total Return3 5.26% 2.72% -1.82% 2.41% 14.69% 21.31%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $61 $59 $58 $51 $156 $84

Ratio of Total Expenses to

Average Net Assets 0.36% 0.35% 0.36% 0.37% 0.40% 0.45%

Ratio of Net Investment Income to


Portfolio Turnover Rate4 3% 7% 12% 8% 8% 10%

The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.

1 Calculated based on average shares outstanding.

2 Includes increases from purchase and redemption fees of $.00, $.00, $.00, $.00, $.02, and $.01.

3 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.

4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Financial Highlights



24

ETF Shares

Six Months

Ended





Net Investment Income .872 1.7521 1.802 2.437 1.7131 1.8201


on Investments2 1.809 (.241) (2.747) (1.120) 5.869 7.460

Total from Investment Operations 2.681 1.511 (.945) 1.317 7.582 9.280

Distributions

Dividends from Net Investment Income (1.631) (1.741) (2.015) (2.417) (2.542) (2.070)


Total Distributions (1.631) (1.741) (2.015) (2.417) (2.542) (2.070)


Total Return 5.36% 2.92% -1.66% 2.51% 14.77% 21.44%


Net Assets, End of Period (Millions) $4,036 $3,616 $3,111 $2,203 $1,306 $381













25

Admiral Shares

Six Months

Ended





Net Investment Income .528 1.0581 1.090 1.466 1.0121 1.0931


on Investments2 1.101 (.139) (1.673) (.661) 3.580 4.528

Total from Investment Operations 1.629 .919 (.583) .805 4.592 5.621

Distributions

Dividends from Net Investment Income (.989) (1.059) (1.217) (1.455) (1.542) (1.261)


Total Distributions (.989) (1.059) (1.217) (1.455) (1.542) (1.261)


Total Return3 5.38% 2.91% -1.66% 2.55% 14.83% 21.43%









Signal Shares were renamed Admiral Shares in October 2013. Prior periods’ Financial Highlights are for the Signal class.



3 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.





26

Institutional Shares

Six Months

Ended





Net Investment Income 1.772 3.5591 3.657 4.954 3.4071 3.6581


on Investments2 3.660 (.483) (5.541) (2.273) 11.930 15.107

Total from Investment Operations 5.432 3.076 (1.884) 2.681 15.337 18.765

Distributions

Dividends from Net Investment Income (3.302) (3.536) (4.086) (4.911) (5.157) (4.255)


Total Distributions (3.302) (3.536) (4.086) (4.911) (5.157) (4.255)


Total Return3 5.39% 2.93% -1.61% 2.55% 14.87% 21.48%











3 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.





27

Notes to Financial Statements


Vanguard Global ex-U.S. Real Estate Index Fund is registered under the Investment Company Act of

1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign

issuers, which may subject it to investment risks not normally associated with investing in securities of

U.S. corporations. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral Shares,

and Institutional Shares. Investor Shares are available to any investor who meets the fund’s minimum

purchase requirements. ETF Shares are listed for trading on NYSE Arca; they can be purchased and

sold through a broker. Admiral Shares and Institutional Shares are designed for investors who meet

certain administrative, service, and account-size criteria.

A. The following significant accounting policies conform to generally accepted accounting principles

for U.S. investment companies. The fund consistently follows such policies in preparing its financial

statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange

(generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted

sales prices or official closing prices taken from the primary market in which each security trades;

such securities not traded on the valuation date are valued at the mean of the latest quoted bid and

asked prices. Securities for which market quotations are not readily available, or whose values have

been affected by events occurring before the fund’s pricing time but after the close of the securities’

primary markets, are valued at their fair values calculated according to procedures adopted by the

board of trustees. These procedures include obtaining quotations from an independent pricing

service, monitoring news to identify significant market- or security-specific events, and evaluating

changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-

traded funds), between the time the foreign markets close and the fund’s pricing time. When

fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value

may differ from quoted or published prices for the same securities. Investments in Vanguard Market

Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are valued using

the latest bid prices or using valuations based on a matrix system (which considers such factors as

security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies

are translated into U.S. dollars using exchange rates obtained from an independent third party as

of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation

(depreciation) on investment securities include the effects of changes in exchange rates since the

securities were purchased, combined with the effects of changes in security prices. Fluctuations

in the value of other assets and liabilities resulting from changes in exchange rates are recorded as

unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which

time they are recorded as realized foreign currency gains (losses).

3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of

maintaining full exposure to the stock market, enhancing returns, maintaining liquidity, and minimizing

transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in

the market, or sell futures in response to cash outflows, thereby simulating a fully invested position

in the underlying index while maintaining a cash balance for liquidity. The fund may seek to enhance

returns by using futures contracts instead of the underlying securities when futures are believed to

28


be priced more attractively than the underlying securities. The primary risks associated with the use

of futures contracts are imperfect correlation between changes in market values of stocks held by

the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty

risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead

of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on

an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has

entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin

requirements to secure the fund’s performance and requires daily settlement of variation margin

representing changes in the market value of each contract.

Futures contracts are valued at their quoted daily settlement prices. The aggregate settlement values

of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the

contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of

Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are

recorded as realized futures gains (losses).

During the six months ended April 30, 2017, the fund’s average investments in long and short futures

contracts represented less than 1% and 0% of net assets, respectively, based on the average of

aggregate settlement values at each quarter-end during the period.

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company

and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all

open federal income tax years (October 31, 2013–2016), and for the period ended April 30, 2017, and

has concluded that no provision for federal income tax is required in the fund’s financial statements.

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional

borrowers. Security loans are subject to termination by the fund at any time, and are required to be

secured at all times by collateral in an amount at least equal to the market value of securities loaned.

Daily market fluctuations could cause the value of loaned securities to be more or less than the value

of the collateral received. When this occurs, the collateral is adjusted and settled on the next business

day. The fund further mitigates its counterparty risk by entering into securities lending transactions

only with a diverse group of prequalified counterparties, monitoring their financial strength, and

entering into master securities lending agreements with its counterparties. The master securities

lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the

fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain

the collateral up to the net amount owed to the fund; however, such actions may be subject to legal

proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may

experience delays and costs in recovering the securities loaned. The fund invests cash collateral

received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Net Assets

for the return of the collateral, during the period the securities are on loan. Securities lending income

represents fees charged to borrowers plus income earned on invested cash collateral, less expenses

associated with the loan. During the term of the loan, the fund is entitled to all distributions made on

or in respect of the loaned securities.

29


7. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)

participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to

a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,

if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,

and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating

funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn

amount of the facility; these fees are allocated to the funds based on a method approved by the

fund’s board of trustees and included in Management and Administrative expenses on the fund’s

Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the

higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight

bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at April 30, 2017, or at any time during the period

then ended.

8. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income

distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and

discounts on debt securities purchased are amortized and accreted, respectively, to interest income

over the lives of the respective securities. Security transactions are accounted for on the date

securities are bought or sold. Costs used to determine realized gains (losses) on the sale of

investment securities are those of the specific securities sold. Fees assessed on capital share

transactions are credited to paid-in capital.

Each class of shares has equal rights as to assets and earnings, except that each class separately

bears certain class-specific expenses related to maintenance of shareholder accounts (included in

Management and Administrative expenses) and shareholder reporting. Marketing and distribution

expenses are allocated to each class of shares based on a method approved by the board of trustees.

Income, other non-class-specific expenses, and gains and losses on investments are allocated to

each class of shares based on its relative net assets.

B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and

the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative,

marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These

costs of operations are allocated to the fund based on methods and guidelines approved by the board

of trustees. Vanguard does not require reimbursement in the current period for certain costs of

operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability

for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in

Vanguard. At April 30, 2017, the fund had contributed to Vanguard capital in the amount of $299,000,

representing 0.01% of the fund’s net assets and 0.12% of Vanguard’s capitalization. The fund’s

trustees and officers are also directors and employees, respectively, of Vanguard.

30


C. Various inputs may be used to determine the value of the fund’s investments. These inputs

are summarized in three broad levels for financial statement purposes. The inputs or methodologies

used to value securities are not necessarily an indication of the risk associated with investing in

those securities.

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest

rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine

the fair value of investments).

The following table summarizes the market value of the fund’s investments as of April 30, 2017,

based on the inputs used to value them:

Level 1 Level 2 Level 3

Investments ($000) ($000) ($000)

Common Stocks 228,096 4,407,162 11,616

Temporary Cash Investments 147,754 1,898 —

Futures Contracts—Liabilities1 (85) — —

Total 375,765 4,409,060 11,616

1 Represents variation margin on the last day of the reporting period.

D. At April 30, 2017, the aggregate settlement value of open futures contracts and the related

unrealized appreciation (depreciation) were:

($000)

Aggregate

Number of Settlement Unrealized

Long (Short) Value Appreciation

Futures Contracts Expiration Contracts Long (Short) (Depreciation)

E-mini S&P 500 Index June 2017 304 36,184 507

Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized

gain (loss) for tax purposes.

E. Distributions are determined on a tax basis and may differ from net investment income and

realized capital gains for financial reporting purposes. Differences may be permanent or temporary.

Permanent differences are reclassified among capital accounts in the financial statements to reflect

their tax character. Temporary differences arise when certain items of income, expense, gain, or loss

are recognized in different periods for financial statement and tax purposes. These differences will

reverse at some time in the future. Differences in classification may also result from the treatment

of short-term gains as ordinary income for tax purposes.

31


During the six months ended April 30, 2017, the fund realized net foreign currency losses of

$765,000, which decreased distributable net income for tax purposes; accordingly, such losses have

been reclassified from accumulated net realized losses to overdistributed net investment income.

Certain of the fund’s investments are in securities considered to be passive foreign investment

companies, for which any unrealized appreciation and/or realized gains are required to be included

in distributable net investment income for tax purposes. During the six months ended April 30, 2017,

the fund realized gains on the sale of passive foreign investment companies of $22,906,000, which

have been included in current and prior periods’ taxable income; accordingly, such gains have been

reclassified from accumulated net realized losses to overdistributed net investment income. Passive

foreign investment companies had unrealized appreciation of $62,162,000 at April 30, 2017.

During the six months ended April 30, 2017, the fund realized $30,175,000 of net capital gains

resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities

held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not

distributed to shareholders, they have been reclassified from accumulated net realized losses to

paid-in capital.

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For

tax purposes, at October 31, 2016, the fund had available capital losses totaling $88,065,000 to offset

future net capital gains. Of this amount, $1,948,000 is subject to expiration on October 31, 2019.

Capital losses of $86,117,000 realized beginning in fiscal 2012 may be carried forward indefinitely

under the Regulated Investment Company Modernization Act of 2010, but must be used before any

expiring loss carryforwards. The fund will use these capital losses to offset net taxable capital gains,

if any, realized during the year ending October 31, 2017; should the fund realize net capital losses for

the year, the losses will be added to the loss carryforward balance above.

At April 30, 2017, the cost of investment securities for tax purposes was $4,949,521,000. Net

unrealized depreciation of investment securities for tax purposes was $152,995,000, consisting

of unrealized gains of $238,019,000 on securities that had risen in value since their purchase and

$391,014,000 in unrealized losses on securities that had fallen in value since their purchase.

F. During the six months ended April 30, 2017, the fund purchased $913,672,000 of investment

securities and sold $592,112,000 of investment securities, other than temporary cash investments.

Purchases and sales include $740,730,000 and $524,230,000, respectively, in connection with

in-kind purchases and redemptions of the fund’s capital shares.

32


G. Capital share transactions for each class of shares were:

Six Months Ended Year Ended

April 30, 2017 October 31, 2016

Amount Shares Amount Shares

($000) (000) ($000) (000)

Investor Shares

Issued1 4,684 226 9,439 444

Issued in Lieu of Cash Distributions 1,513 77 1,605 76

Redeemed2 (5,171) (249) (9,785) (462)

Net Increase (Decrease)—Investor Shares 1,026 54 1,259 58

ETF Shares

Issued1 903,973 17,302 623,142 11,610

Issued in Lieu of Cash Distributions — — — —

Redeemed2 (548,895) (10,900) (91,670) (1,900)

Net Increase (Decrease)—ETF Shares 355,078 6,402 531,472 9,710

Admiral Shares

Issued1 40,467 1,293 69,738 2,160


Redeemed2 (29,484) (944) (53,677) (1,680)

Net Increase (Decrease)—Admiral Shares 20,801 680 25,946 790

Institutional Shares

Issued1 7,772 72 8,742 83


Redeemed2 — — (14,517) (132)

Net Increase (Decrease)—Institutional Shares 11,053 105 (2,165) (15)

1 Includes purchase fees for fiscal 2017 and 2016 of $3,000 and $266,000, respectively (fund totals).

2 Net of redemption fees for fiscal 2017 and 2016 of $78,000 and $170,000, respectively (fund totals).

At April 30, 2017, one shareholder was the record or beneficial owner of 26% of the fund’s net assets.

If the shareholder were to redeem its investment in the fund, the redemption might result in an

increase in the fund’s expense ratio.

H. Management has determined that no material events or transactions occurred subsequent to

April 30, 2017, that would require recognition or disclosure in these financial statements.

33

About Your Fund’s Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management,

administrative services, and shareholder reports (like this one), among others. Operating expenses,

which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the

expense ratio. The following examples are intended to help you understand the ongoing costs (in

dollars) of investing in your fund and to compare these costs with those of other mutual funds. The

examples are based on an investment of $1,000 made at the beginning of the period shown and held

for the entire period.

The accompanying table illustrates your fund’s costs in two ways:

• Based on actual fund return. This section helps you to estimate the actual expenses that you paid

over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the

third column shows the dollar amount that would have been paid by an investor who started with

$1,000 in the fund. You may use the information here, together with the amount you invested, to

estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by

$1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses

Paid During Period.“

• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s

costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before

expenses, but that the expense ratio is unchanged. In this case—because the return used is not the

fund’s actual return—the results do not apply to your investment. The example is useful in making

comparisons because the Securities and Exchange Commission requires all mutual funds to calculate

expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical

example with the hypothetical examples that appear in shareholder reports of other funds.

Note that the expenses shown in the table are meant to highlight and help you compare ongoingcosts only and do not reflect transaction costs incurred by the fund for buying and selling securities.Further, the expenses do not include any purchase, redemption, or account service fees described inthe fund prospectus. If such fees were applied to your account, your costs would be higher. Yourfund does not carry a “sales load.”

The calculations assume no shares were bought or sold during the period. Your actual costs may

have been higher or lower, depending on the amount of your investment and the timing of any

purchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios, in the

Financial Statements section of this report. For additional information on operating expenses and

other shareholder costs, please refer to your fund’s current prospectus.

34

35

Six Months Ended April 30, 2017


Beginning

Account Value

10/31/2016

Ending

Account Value

4/30/2017

Expenses

Paid During

Period

Based on Actual Fund Return

Investor Shares $1,000.00 $1,052.59 $1.83

ETF Shares 1,000.00 1,053.61 0.76

Admiral Shares 1,000.00 1,053.82 0.76

Institutional Shares 1,000.00 1,053.88 0.66

Based on Hypothetical 5% Yearly Return

Investor Shares $1,000.00 $1,023.01 $1.81

ETF Shares 1,000.00 1,024.05 0.75

Admiral Shares 1,000.00 1,024.05 0.75

Institutional Shares 1,000.00 1,024.15 0.65

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for thatperiod are 0.36% for Investor Shares, 0.15% for ETF Shares, 0.15% for Admiral Shares, and 0.13% for Institutional Shares. The dollaramounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period,multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period(181/365).

The board of trustees of Vanguard Global ex-U.S. Real Estate Index Fund has renewed the fund’s

investment advisory arrangement with The Vanguard Group, Inc. (Vanguard)—through its Equity

Index Group. The board determined that continuing the fund’s internalized management structure

was in the best interests of the fund and its shareholders.

The board based its decision upon an evaluation of the advisor’s investment staff, portfolio

management process, and performance. This evaluation included information provided to the

board by Vanguard’s Portfolio Review Department, which is responsible for fund and advisor

oversight and product management. The Portfolio Review Department met regularly with the

advisor and made monthly presentations to the board during the fiscal year that directed the

board’s focus to relevant information and topics.

The board, or an investment committee made up of board members, also received information

throughout the year during advisor presentations. For each advisor presentation, the board was

provided with letters and reports that included information about, among other things, the advisory

firm and the advisor’s assessment of the investment environment, portfolio performance, and

portfolio characteristics.

In addition, the board received monthly reports, which included a Market and Economic Report,

a Fund Dashboard Monthly Summary, and a Fund Performance Report.

Prior to their meeting, the trustees were provided with a memo and materials that summarized the

information they received over the courses of the year. They also considered the factors discussed

below, among others. However, no single factor determined whether the board approved the

arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.

Nature, extent, and quality of services

The board reviewed the quality of the investment management services provided to the fund

since its inception in 2010 and took into account the organizational depth and stability of the advisor.

The board considered that Vanguard has been managing investments for more than three decades.

The Equity Index Group adheres to a sound, disciplined investment management process; the team

has considerable experience, stability, and depth.

The board concluded that Vanguard’s experience, stability, depth, and performance, among other

factors, warranted continuation of the advisory arrangement.

Investment performance

The board considered the fund’s performance since its inception, including any periods of

outperformance or underperformance compared with its target index and peer group. The

board concluded that the performance was such that the advisory arrangement should continue.

Information about the fund’s most recent performance can be found in the Performance Summary

section of this report.

Cost

The board concluded that the fund’s expense ratio was well below the average expense ratio

charged by funds in its peer group and that the fund’s advisory expenses were also below its

peer-group average. Information about the fund’s expenses appears in the About Your Fund’s

Expenses section of this report as well as in the Financial Statements section.

Trustees Approve Advisory Arrangement

36

The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique

“at-cost” structure. Unlike most other mutual fund management companies, Vanguard is owned

by the funds it oversees and produces “profits” only in the form of reduced expenses for fund

shareholders.

The benefit of economies of scale

The board concluded that the fund’s at-cost arrangement with Vanguard ensures that the fund

will realize economies of scale as it grows, with the cost to shareholders declining as fund

assets increase.

The board will consider whether to renew the advisory arrangement again after a one-year period.

37

Glossary

38

Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and

downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index,

a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the

index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both

the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared

(see definition). The lower the R-squared, the less correlation there is between the fund and the

index, and the less reliable beta is as an indicator of volatility.

Dividend Yield. Dividend income earned by stocks, expressed as a percentage of the aggregate

market value (or of net asset value, for a fund). The yield is determined by dividing the amount of the

annual dividends by the aggregate value (or net asset value) at the end of the period. For a fund, the

dividend yield is based solely on stock holdings and does not include any income produced by other

investments. This yield may include some payments that represent a return of capital, capital gains

distributions, or both by the underlying stocks.

Earnings Growth Rate. The average annual rate of growth in earnings over the past five years for

the stocks now in a fund.

Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any

holdings in short-term reserves are excluded.

Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s

average net assets. The expense ratio includes management and administrative expenses, but does

not include the transaction costs of buying and selling portfolio securities.

Fair-Value Pricing. Fair-value adjustments, which are required by the Securities and Exchange

Commission, address pricing discrepancies that may arise because of time-zone differences among

global stock markets. Foreign stocks may trade on exchanges that close many hours before a fund’s

closing share price is calculated in the United States, generally at 4 p.m., Eastern time. In the hours

between the foreign close and the U.S. close, the value of these foreign securities may

change—because of company-specific announcements or market-wide developments, for example.

Such price changes are not immediately reflected in international index values. Fair-value pricing

takes such changes into account in calculating the fund’s daily net asset value, thus ensuring that

the NAV doesn’t include “stale” prices. The result can be a temporary divergence between the

return of the fund and that of its benchmark index—a difference that usually corrects itself when the

foreign markets reopen.

Inception Date. The date on which the assets of a fund (or one of its share classes) are first

invested in accordance with the fund’s investment objective. For funds with a subscription period,

the inception date is the day after that period ends. Investment performance is measured from the

inception date.

Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint of

market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the

proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s assets

have market capitalizations above the median, and the rest are below it.

Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share. For a

fund, the weighted average price/book ratio of the stocks it holds.

39

Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the past

year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market

expectations about corporate prospects; the higher the P/E, the greater the expectations for a

company’s future growth.

R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from

the market in general, as measured by a given index. If a fund’s total returns were precisely

synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no

relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on

returns over the past 36 months for both the fund and the index.

Return on Equity. The annual average rate of return generated by a company during the past five

years for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a fund,

the weighted average return on equity for the companies whose stocks it holds.

Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that

can be readily converted to cash.

Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur

higher transaction costs and may be more likely to distribute capital gains (which may be taxable to

investors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.

The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best

interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on

the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and

provides services to them on an at-cost basis.

A majority of Vanguard’s board members are independent, meaning that they have no affiliation with

Vanguard or the funds they oversee, apart from the sizable personal investments they have made as

private individuals. The independent board members have distinguished backgrounds in business,

academia, and public service. Each of the trustees and executive officers oversees 197 Vanguard funds.

The following table provides information for each trustee and executive officer of the fund. The mailing

address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about

the trustees is in the Statement of Additional Information, which can be obtained, without charge, by

contacting Vanguard at 800-662-7447, or online at vanguard.com.

Interested Trustee1

F. William McNabb III

Born 1957. Trustee Since July 2009. Chairman of

the Board. Principal Occupation(s) During the Past

Five Years and Other Experience: Chairman of the

Board of The Vanguard Group, Inc., and of each of the

investment companies served by The Vanguard Group,

since January 2010; Director of The Vanguard Group

since 2008; Chief Executive Officer and President of

The Vanguard Group, and of each of the investment

companies served by The Vanguard Group, since 2008;

Director of Vanguard Marketing Corporation; Managing

Director of The Vanguard Group (1995–2008).

Independent Trustees

Emerson U. Fullwood

Born 1948. Trustee Since January 2008. Principal

Occupation(s) During the Past Five Years and Other

Experience: Executive Chief Staff and Marketing

Officer for North America and Corporate Vice President

(retired 2008) of Xerox Corporation (document manage-

ment products and services); Executive in Residence

and 2009–2010 Distinguished Minett Professor at

the Rochester Institute of Technology; Lead Director

of SPX FLOW, Inc. (multi-industry manufacturing);

Director of the United Way of Rochester, the

University of Rochester Medical Center, Monroe

Community College Foundation, North Carolina

A&T University, and Roberts Wesleyan College.

Rajiv L. Gupta

Born 1945. Trustee Since December 2001.2 Principal


Experience: Chairman and Chief Executive Officer

(retired 2009) and President (2006–2008) of Rohm

and Haas Co. (chemicals); Director of Arconic Inc.

(diversified manufacturer), HP Inc. (printer and personal

computer manufacturing), and Delphi Automotive plc

(automotive components); Senior Advisor at New

Mountain Capital.

Amy Gutmann

Born 1949. Trustee Since June 2006. Principal


Experience: President of the University of Pennsylvania;

Christopher H. Browne Distinguished Professor of

Political Science, School of Arts and Sciences, and

Professor of Communication, Annenberg School for

Communication, with secondary faculty appointments

in the Department of Philosophy, School of Arts and

Sciences, and at the Graduate School of Education,

University of Pennsylvania; Trustee of the National

Constitution Center; Chair of the Presidential

Commission for the Study of Bioethical Issues.

JoAnn Heffernan Heisen

Born 1950. Trustee Since July 1998. Principal


Experience: Corporate Vice President and Member of

the Executive Committee (1997–2008), Chief Global

Diversity Officer (retired 2008), Vice President and

Chief Information Officer (1997–2005), Controller

(1995–1997), Treasurer (1991–1995), and Assistant

Treasurer (1989–1991) of Johnson & Johnson

(pharmaceuticals/medical devices/consumer products);

Director of Skytop Lodge Corporation (hotels) and the

Robert Wood Johnson Foundation; Member of the

Advisory Board of the Institute for Women’s Leadership

at Rutgers University.

F. Joseph Loughrey

Born 1949. Trustee Since October 2009. Principal


Experience: President and Chief Operating Officer

(retired 2009) of Cummins Inc. (industrial machinery);

Chairman of the Board of Hillenbrand, Inc. (specialized

consumer services), Oxfam America, and the Lumina

Foundation for Education; Director of SKF AB

(industrial machinery), Hyster-Yale Materials Handling,

Inc. (forklift trucks), and the V Foundation for Cancer

Research; Member of the Advisory Council for the

College of Arts and Letters and Chair of the Advisory

Board to the Kellogg Institute for International Studies,

both at the University of Notre Dame.

Mark Loughridge

Born 1953. Trustee Since March 2012. Principal


Experience: Senior Vice President and Chief Financial

Officer (retired 2013) at IBM (information technology

services); Fiduciary Member of IBM’s Retirement Plan

Committee (2004–2013); Director of the Dow Chemical

Company; Member of the Council on Chicago Booth.

Scott C. Malpass

Born 1962. Trustee Since March 2012. Principal


Experience: Chief Investment Officer and Vice

President at the University of Notre Dame; Assistant

Professor of Finance at the Mendoza College of

Business at Notre Dame; Member of the Notre Dame

403(b) Investment Committee, the Board of Advisors

for Spruceview Capital Partners, and the Investment

Advisory Committee of Major League Baseball; Board

Member of TIFF Advisory Services, Inc., and Catholic

Investment Services, Inc. (investment advisors);

Member of the Board of Superintendence of the

Institute for the Works of Religion.

André F. Perold

Born 1952. Trustee Since December 2004.

Principal Occupation(s) During the Past Five Years

and Other Experience: George Gund Professor

of Finance and Banking, Emeritus at the Harvard

Business School (retired 2011); Chief Investment

Officer and Co-Managing Partner of HighVista

Strategies LLC (private investment firm);

Overseer of the Museum of Fine Arts Boston.

Peter F. Volanakis

Born 1955. Trustee Since July 2009. Principal


Experience: President and Chief Operating Officer

(retired 2010) of Corning Incorporated (communications

equipment); Chairman of the Board of Trustees of

Colby-Sawyer College; Member of the Board of

Hypertherm, Inc. (industrial cutting systems,

software, and consumables).

Executive Officers

Glenn Booraem

Born 1967. Investment Stewardship Officer Since

February 2017. Principal Occupation(s) During the

Past Five Years and Other Experience: Principal of

The Vanguard Group, Inc.; Treasurer (2015–2017),

Controller (2010–2015), and Assistant Controller

(2001–2010) of each of the investment companies

served by The Vanguard Group.

Thomas J. Higgins

Born 1957. Chief Financial Officer Since September

2008. Principal Occupation(s) During the Past Five

Years and Other Experience: Principal of The Vanguard

Group, Inc.; Chief Financial Officer of each of the

investment companies served by The Vanguard Group;

Treasurer of each of the investment companies served

by The Vanguard Group (1998–2008).

Peter Mahoney

Born 1974. Controller Since May 2015. Principal


Experience: Principal of The Vanguard Group, Inc.;

Controller of each of the investment companies served

by The Vanguard Group; Head of International Fund

Services at The Vanguard Group (2008–2014).

Anne E. Robinson

Born 1970. Secretary Since September 2016. Principal


Experience: Managing Director of The Vanguard Group,

Inc.; General Counsel of The Vanguard Group; Secretary

of The Vanguard Group and of each of the investment

companies served by The Vanguard Group; Director

and Senior Vice President of Vanguard Marketing

Corporation; Managing Director and General Counsel

of Global Cards and Consumer Services at Citigroup

(2014–2016); Counsel at American Express

(2003–2014).

Michael Rollings

Born 1963. Treasurer Since February 2017. Principal


Experience: Managing Director of The Vanguard Group,

Inc.; Treasurer of each of the investment companies

served by The Vanguard Group; Executive Vice

President and Chief Financial Officer of MassMutual

Financial Group (2006–2016).

Vanguard Senior Management Team

Mortimer J. Buckley James M. Norris

John James Thomas M. Rampulla

Martha G. King Glenn W. Reed

John T. Marcante Karin A. Risi

Chris D. McIsaac

Chairman Emeritus and Senior Advisor

John J. Brennan

Chairman, 1996–2009

Chief Executive Officer and President, 1996–2008

Founder

John C. Bogle

Chairman and Chief Executive Officer, 1974–1996

1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

2 December 2002 for Vanguard Equity Income Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.

P.O. Box 2600

Valley Forge, PA 19482-2600

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447

Direct Investor Account Services > 800-662-2739

Institutional Investor Services > 800-523-1036

Text Telephone for PeopleWho Are Deaf or Hard of Hearing > 800-749-7273

This material may be used in conjunctionwith the offering of shares of any Vanguardfund only if preceded or accompanied bythe fund’s current prospectus.

All comparative mutual fund data are from Lipper, aThomson Reuters Company, or Morningstar, Inc., unlessotherwise noted.

You can obtain a free copy of Vanguard’s proxy votingguidelines by visiting vanguard.com/proxyreporting or bycalling Vanguard at 800-662-2739. The guidelines arealso available from the SEC’s website, sec.gov. Inaddition, you may obtain a free report on how your fundvoted the proxies for securities it owned during the 12months ended June 30. To get the report, visit eithervanguard.com/proxyreporting or sec.gov.

You can review and copy information about your fund atthe SEC’s Public Reference Room in Washington, D.C. Tofind out more about this public service, call the SEC at202-551-8090. Information about your fund is alsoavailable on the SEC’s website, and you can receivecopies of this information, for a fee, by sending arequest in either of two ways: via email addressed [email protected] or via regular mail addressed to thePublic Reference Section, Securities and ExchangeCommission, Washington, DC 20549-1520.

The index is a product of S&P Dow Jones Indices LLC(“SPDJI”), and has been licensed for use by Vanguard. Standard & Poor’s® and S&P® are registeredtrademarks of Standard & Poor’s Financial Services LLC(“S&P”); Dow Jones® is a registered trademark of DowJones Trademark Holdings LLC (“Dow Jones”); S&P®and S&P 500® are trademarks of S&P; and thesetrademarks have been licensed for use by SPDJI andsublicensed for certain purposes by Vanguard. Vanguard product(s) are not sponsored, endorsed, soldor promoted by SPDJI, Dow Jones, S&P, or theirrespective affiliates and none of such parties make anyrepresentation regarding the advisability of investing insuch product(s) nor do they have any liability for anyerrors, omissions, or interruptions of the index.

© 2017 The Vanguard Group, Inc.All rights reserved.Vanguard Marketing Corporation, Distributor.

Q7382 062017

Semiannual report

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